    [Appendix]
    [Detailed Budget Estimates by Agency]
    [Office of Personnel Management]
    [From the U.S. Government Printing Office, www.gpo.gov]

                         THE BUDGET FOR FISCAL YEAR 2002

                         OFFICE OF PERSONNEL MANAGEMENT

                                  Federal Funds

    General and special funds:

                              Salaries and Expenses

                       (including transfer of trust funds)

        For necessary expenses to carry out functions of the Office of
    Personnel Management pursuant to Reorganization Plan Numbered 2 of 1978
    and the Civil Service Reform Act of 1978, including services as
    authorized by 5 U.S.C. 3109; medical examinations performed for veterans
    by private physicians on a fee basis; rental of conference rooms in the
    District of Columbia and elsewhere; hire of passenger motor vehicles;
    not to exceed $2,500 for official reception and representation expenses;
    advances for reimbursements to applicable funds of the Office of
    Personnel Management and the Federal Bureau of Investigation for
    expenses incurred under Executive Order No. 10422 of January 9, 1953, as
    amended; and payment of per diem and/or subsistence allowances to
    employees where Voting Rights Act activities require an employee to
    remain overnight at his or her post of duty, [$94,095,000;] $99,036,000,
    of which $3,200,000 shall remain available until expended for the cost
    of the governmentwide human resources data network project; and in
    addition [$101,986,000] $115,928,000 for administrative expenses, to be
    transferred from the appropriate trust funds of the Office of Personnel
    Management without regard to other statutes, including direct
    procurement of printed materials, for the retirement and insurance
    programs, of which [$10,500,000] $21,777,000 shall remain available
    until expended for the cost of automating the retirement recordkeeping
    systems: Provided, That the provisions of this appropriation shall not
    affect the authority to use applicable trust funds as provided by
    sections 8348(a)(1)(B), [and 8909(g)] 8909(g), and 9004(f)(1)(A) and
    (2)(A) of title 5, United States Code: Provided further, That no part of
    this appropriation shall be available for salaries and expenses of the
    Legal Examining Unit of the Office of Personnel Management established
    pursuant to Executive Order No. 9358 of July 1, 1943, or any successor
    unit of like purpose: Provided further, That the President's Commission
    on White House Fellows, established by Executive Order No. 11183 of
    October 3, 1964, may, during fiscal year [2001] 2002, accept donations
    of money, property, and personal services in connection with the
    development of a publicity brochure to provide information about the
    White House Fellows, except that no such donations shall be accepted for
    travel or reimbursement of travel expenses, or for the salaries of
    employees of such Commission. (Independent Agencies Appropriations Act,
    2001, as enacted by section 1(a)(3) of P.L. 106-554.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0100-0-1-805      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Merit systems oversight and
              effectiveness.................          21          21          22
    00.02   Employment service..............          24          26          27
    00.03   Retirement and insurance service         101         125         150
    00.04   Workforce compensation and
              performance service...........           8           8           8
    00.05   Investigations service..........           3           3           3
    00.06   Workforce relations.............           5           5           5
    00.07   Executive resources.............           2           2           2
    00.08   Administrative services.........          26          27          30
    00.09   Executive and other services....          12          14          14
    09.01 Reimbursable program..............           9          24          24
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         211         255         285
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           8          14
    22.00 New budget authority (gross)......         211         255         285
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          12
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         231         269         285
    23.95 Total new obligations.............        -211        -255        -285
    23.98 Unobligated balance expiring or
            withdrawn.......................          -7         -14
    24.40 Unobligated balance carried
            forward, end of year............          14
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          91          94          99
    40.76   Reduction pursuant to P.L. 106-
              113...........................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          90          94          99
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         109         161         186
    68.10   Change in uncollected customer
              payments from Federal sources.          12
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         121         161         186
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         211         255         285
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          52          47          47
    72.95   Uncollected customer payments
              from Federal sources, start of
              year..........................         -59         -71         -71
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          -7         -24         -24
    73.10 Total new obligations.............         211         255         285
    73.20 Total outlays (gross).............        -211        -255        -280
    73.40 Adjustments in expired accounts
            (net)...........................           7
    73.45 Recoveries of prior year
            obligations.....................         -12
    74.00 Change in uncollected customer
            payments from Federal sources...         -12                      -5
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          47          47          47
    74.95   Uncollected customer payments
              from Federal sources, end of
              year..........................         -71         -71         -71
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year         -24         -24         -24
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         199         243         272
    86.93 Outlays from discretionary
            balances........................          12          12           8
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         211         255         280
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -109        -161        -186
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources.         -12
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          90          94          99
    90.00 Outlays...........................         102          94          94
    ---------------------------------------------------------------------------

        The Office of Personnel Management (OPM) is responsible for
    personnel management functions which include the following activities:

        Merit systems oversight and effectiveness.--This activity includes:
    (a) evaluating human resources management (HRM) in Federal agencies
    through various methods, including on-site reviews and special studies;
    (b) administering classification appeals, Fair Labor Standards Act, and
    Intergovernmental Personnel programs to ensure that agencies adhere to
    the statutory requirements; (c) helping agencies develop merit-based HRM
    accountability systems to support mission accomplishment; (d) assessing
    the effectiveness of Governmentwide HRM policies and programs and
    serving as a clearinghouse for best practices; (e) testing and
    evaluating innovative HRM practices and systems, including demonstration
    projects under 5 U.S.C. Chapter 47; (f) providing readily accessible
    statistics on the Federal workforce; and (g) administering parts of the
    Voting Rights Act of 1965.

    [[Page 1080]]

        Program performance.--The activity's performance measures are
    designed to assess the value-added outcomes which oversight reviews,
    accountability and demonstration projects, and workforce information
    have on the Federal HRM community and employees. Client feedback is
    solicited on each review, product, and service. For example, clients
    rate the overall value of the oversight work as 4 on a 5-point scale.
    The quality of data that is provided to clients is regularly assessed,
    and is used in reviews, studies, and projects. Of each agency's records
    entered into the Central Personnel Data File, at least 97 percent are
    correct on all core elements. The Merit System Principles Questionnaire,
    used to collect employee perceptions of the merit system principles, is
    content valid and reliable. OPM conducts 15 to 16 nationwide agency
    oversight reviews each year to ensure compliance with Federal Civil
    Service merit principles.

        Employment service.--The Employment Service performs core human
    resources employment functions that are essential to attracting, hiring,
    and retaining a high-quality, diverse Federal workforce. These functions
    include providing guidance and assistance on: implementation of laws and
    Presidential directives; recruitment, selection and promotion; delegated
    examining; training; workforce planning and restructuring; Federal
    employment information; and veterans' employment issues. The Service
    performs additional functions that are funded through a mix of direct
    appropriations and reimbursable funds (e.g., USAJOBS, the Presidential
    Management Intern program, the selection and assignment of all Federal
    Administrative Law Judges). In 2001 and 2002, the Service will continue
    to emphasize improving Federal employment opportunities for adults with
    disabilities and Hispanic Americans, and to enhance the Government's
    ability to recruit, develop, and retain computer security professionals.

        Program performance.--The Employment Service establishes annual
    performance goals and objectives designed to accomplish long-term goals
    identified in OPM's Strategic Plan. Progress is monitored through a mix
    of outcome and output measures, including results of oversight reviews,
    qualitative feedback on the usefulness of policies and information
    processes, customer satisfaction with services, cost-comparison
    analyses, workload accomplishment data, and quality and timeliness of
    information.

        The Employment service provided employment information to over 16.5
    million people in 2000 through a nationwide system available 24 hours a
    day, 7 days aweek, by telephone, fax, internet, and touch screen kiosks.
    USAJOBS averages more than 45,000 visits daily and future growth is
    anticipated.

        The Employment Service conducts a recertification and training
    program for all agency Delegated Examining Units to ensure that agencies
    are carrying out their delegated responsibilities in accordance with law
    and regulation, and accomplished all scheduled recertifications.

        In 2000, the Employment Service issued regulations and extensive
    guidance on implementing new laws, such as the Veterans Millennium
    Health Care and Benefits Act (Public Law 106-117), and changes in
    voluntary early retirement authority. It also implemented Presidential
    initiatives, such as increasing the opportunities for persons with
    disabilities to be employed in the Federal workforce, recruiting and
    retaining a high quality diverse workforce, and eliminating redundant
    excepted appointment authorities. In 2000, the Service developed a
    Workforce Planning Model to help agencies construct plans that address
    their future workforce needs. In 2002, the Service will implement a
    fully-functional, on-line workforce planning system to help Federal
    agencies align human resources with accomplishment of agency mission and
    objectives and meet the President's goal to flatten the Federal
    hierarchy.

        Retirement and Insurance.-- This Activity encompasses administration
    of Earned Employee Benefits--the retirement and insurance programs--for
    Federal employees, retired Federal employees, and their families. These
    programs include the Civil Service Retirement System, the Federal
    Employees' Retirement System, the Federal Employees' Group Life
    Insurance Program, and the Federal Employees and Retired Employees
    Health Benefits Programs. The Long-Term Care Security Act (P.L. 106-265)
    authorizes OPM to offer group long term care insurance for Federal
    employees and retirees, their spouses, parents, and parents-in-law. In
    addition, this Activity includes OPM's efforts designed to stay abreast
    of, and respond to, developments in non-Federal fringe benefits
    practices.

        Program performance.--2002 will be a pivotal year for the Retirement
    Systems Modernization (RSM) Project, OPM's central strategy to meet its
    long term customer service, financial management and business goals for
    the Retirement Program. The project is an on-going effort with phased
    implementation plans. In 2002, acquisition and implementation will begin
    for three major components. The Project will begin developing the
    capability to capture data electronically that historically has been
    available only on paper. Also, OPM will begin development of software
    that will be integrated with program-wide data to ensure employees are
    placed in the correct retirement system. Finally, planning will begin
    for development of a full function benefits calculator. This calculator
    will be available for use across all federal agencies and will be
    available for self-service by employees and annuitants to provide
    accurate estimates and projections of expected benefit payments. The RSM
    effort will result in changes to current processes and systems so that
    claims processing, record keeping, benefits counseling, and financial
    management functions are performed more efficiently and effectively.

        Customer satisfaction with the delivery of retirement program
    services to annuitants remains high, as 93 percent of customers reported
    they were generally to very satisfied with OPM's overall retirement
    services. This continues a five-year trend of satisfaction levels in the
    90 percent range.

        OPM continues to improve its telecommunication services. Toll-free
    telephone access is provided to all call centers, interactive features
    are available through the telephone system, and hours of operation have
    been extended until 8:00 PM. In addition, to better serve customers, we
    have enhanced our ability to meet their needs by adding on-line features
    for our Spanish-speaking customers and translating often-used benefits
    material into Spanish. The volume of telephone inquiries handled
    increased by seven percent during 2000 and has nearly doubled since
    1994. Customer satisfaction levels regarding the courtesy, clarity, and
    timeliness of telephone services remain high at 90 percent.

        The volume of new annuity claims remained steady. OPM has received
    and processed an average of 170,000 Civil Service and Federal Employees'
    Retirement Systems annuity and survivor claims annually over the past
    five years. The average processing time in 2000 for interim annuity
    payments was five days, and more than 30 percent of them were within one
    day. The time needed to calculate and begin paying retirees their final
    annuity spiked upward in 2000. However, OPM increased its claims
    processing capacity and efficiency through the use of a new technical
    platform for FERS processing. By 2002 this enhancement is expected to
    reduce claims processing times back to levels near those in existence
    prior to 2000. Customer satisfaction with the timeliness of the first
    annuity payment has remained at or near 80 percent since 1997 and is
    much improved over the 73 percent observed in 1995.

    [[Page 1081]]

        OPM also maintained its leadership in the direct deposit program, an
    efficient means of ensuring that customers receive their annuity payment
    each month. Customer satisfaction levels with receipt of annuity checks
    are at 97 percent, continuing another long-standing trend. During 1998,
    OPM implemented a direct mail campaign to inform annuitants and
    survivors of the convenience and desirability of direct deposit. As a
    result, participation rose from 79 percent at the start of 1998 to
    nearly 93 percent today.

        In the health insurance program, the 2001 FEHB Program benefit
    structure provides for parity in the provision of mental health and
    substance abuse benefits with medical benefits. In addition, OPM
    addressed patient safety, collaborating with others in the health care
    industry to develop the ``Five Steps to Patient Safety.'' These
    ``Steps'' have been widely adopted both in and out of Government. OPM
    asked participating health plans to report patient safety initiatives
    already adopted by them and to work with participating providers to
    articulate and disseminate information about the safety initiatives they
    have put in practice. Health plans were asked to update provider
    directories, where appropriate, to inform their membership of important
    safety measures. These initiatives include such practices as the use of
    automated entry systems for prescription drugs, referring patients to
    recognized Centers of Excellence, and staffing appropriately for
    Intensive Care Units. Other consumer protections and quality initiatives
    now provided by FEHBP plans include, but are not limited to:
    transitional care for those with chronic or disabling conditions; the
    right to review medical records and to correct inaccurate ones; and
    direct access to women's health care providers.

        To strengthen its leadership role in the health insurance industry,
    OPM continues to build and maintain strong relationships with the
    National Committee for Quality Assurance (NCQA), the Joint Commission on
    Accreditation of Healthcare Organizations (JCAHO), the National Quality
    Forum, the Quality Interagency Coordination (QuIC) Taskforce, the
    Washington Business Group on Health, the Leapfrog Group, the Health Care
    Financing Administration and other components of the Department of
    Health and Human Services. These partnerships have been instrumental in
    promoting the use of health care quality outcome measures by the Federal
    Government and health care purchasers and providers throughout the
    Nation. During 2001, OPM also gathered Health Employees Data Information
    Sets (HEDIS) from participating FEHBP Health Maintenance Organizations
    and selected Preferred Provider Organizations.

        The Long-Term Care Security Act of 2000 authorizes OPM to offer
    long-term care insurance to approximately 20 million people by October
    2002. OPM plans to offer a flexible long-term care product, including
    provisions for nursing home care, assisted living, home health care, and
    adult day care. Insurance will be offered to civil service, postal, and
    military personnel, and government retirees and specified relatives,
    including spouses, parents, parents-in-law, and stepparents. OPM
    estimates that 300,000 to 600,000 individuals will enroll during the
    first sign- up period in 2003. Enrollees will pay the full cost of
    insurance premiums at group rates that are expected to be 15 to 20
    percent lower than rates for comparable coverage sold privately on an
    individual basis. Beginning in late 2001, OPM will issue regulations for
    the new program and will oversee an education campaign to explain long-
    term care options to employees and retirees. OPM will assure that
    consumer materials and guidance are readily accessible (through
    mailings, the Internet, and toll free advice and assistance phone
    lines), to help individuals make informed choices about purchasing the
    long-term care product(s).

        In late 2000, legislation was enacted to provide relief to employees
    who were placed in the wrong retirement system. The Federal Erroneous
    Retirement Coverage Corrections Act (FERCCA) allows most of these
    employees a choice in retirement plans. In 2001, OPM issued regulations
    and guidance to implement the law, developed a web-based database of
    individuals who may be eligible for relief under FERCCA, developed a
    projection model to allow employees to simulate benefits under the plans
    available to them, and entered into a contract that will make it
    possible for each affected employee to receive one-on-one counseling and
    projections of benefits upon which to base an election decision. This
    counseling activity will continue through 2002, along with the actions
    necessary to effectuate eligible individuals' decisions.

        Workforce compensation and performance.--This activity includes; (a)
    developing and implementing pay and leave administration policy and
    evaluating the effectiveness of alternative compensation systems; (b)
    developing classification policies and systems and designing flexible
    alternatives to current systems; and (c) developing Governmentwide
    policy concerning performance management.

        Program performance.--The workforce compensation and performance
    program area uses a variety of measures to identify its level of
    success. Overall customer service is measured through OPM's Customer
    Satisfaction Survey, surveys of attendees at conferences, workshops,
    and/or seminars, and feedback from users of our website and email. The
    2000 HR Directors' Customer Satisfaction Survey showed that the
    percentage of human resources directors who were satisfied with policy
    leadership in WCPS program areas were as follows; 87 percent in pay and
    leave administration, 78 percent in performance management, 68 percent
    in position classification and position management, and 62 percent in
    the Federal Wage System. In 2000 the organization staged the second
    Strategic Compensation Conference. On a five-point scale, the average
    overall rating of the Conference was 4.23, an increase from 4.14 for the
    1999 Conference. The overall improvement in perception of outcomes in
    WCPS program areas is demonstrated by the increase in positive responses
    in the National Performance Review survey of more than 20,000 Federal
    employees. Favorable responses increased in one year from 26 percent to
    31 percent on the question ``are you clear about how good performance is
    defined in your organization?'' On the issue ``recognition and rewards
    are based on merit,'' positive responses increased from 30 percent to 34
    percent.

        Investigations.--This activity focuses on assuring applicant and
    appointee fitness and suitability, and oversight of the investigative
    contract company.

        Workforce relations.--This activity includes: (a) developing
    govemmentwide policies, issuing guidance, and providing assistance to
    agencies on employee relations issues, including actions based on
    misconduct and unacceptable performance, as well as alternative dispute
    resolution; (b) promoting and supporting Federal work/life and wellness
    programs; (c) providing leadership and policy guidance in support of
    agency human resource development programs and training initiatives; and
    (d) providing guidance, information, and assistance to agencies on
    collective bargaining and labor-management relations to help them
    develop effective labor relations programs.

        Program performance.--OPM's workforce relations performance measures
    are designed to determine the value added by OPM's policy leadership and
    guidance on employee and labor-management relations issues, work/life
    programs, and human resource development programs. The Office of
    Workforce Relations (OWR) uses a variety of measures to identify its
    level of success. For instance, surveys at regular intervals assess the
    extent to which our customers feel that their needs are met by OWR
    products and services such as printed and electronic materials,
    conferences, seminars, and workshops, as well as by legislative and
    regulatory proposals coming from OWR.

    [[Page 1082]]

        Executive resources.--This activity provides Government-wide program
    leadership, policy direction and technical assistance on all aspects of
    the Senior Executive Service personnel system and comparable executive
    systems.

        Administrative services.--This activity includes: OPM personnel and
    equal employment opportunity, security, facilities, telecommunications,
    publishing, acquisitions, and information resources management to
    support all OPM programs.

        Executive and other services.--This activity includes: executive
    direction, policy development, legal advice and representation, public
    affairs, legislative activities, financial management, and the operating
    expenses of the President's Commission on White House Fellows.

        Reimbursable programs.--OPM performs reimbursable work at the
    request of other agencies. OPM also provides administrative, information
    resources management, and executive services to other OPM accounts on a
    reimbursable basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0100-0-1-805      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          99         106         109
    11.3      Other than full-time permanent           5           5           5
    11.5      Other personnel compensation..           4           4           4
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         108         115         118
    12.1    Civilian personnel benefits.....          23          26          27
    21.0    Travel and transportation of
              persons.......................           2           3           3
    23.1    Rental payments to GSA..........          17          17          17
    23.3    Communications, utilities, and
              miscellaneous charges.........           9          10          10
    24.0    Printing and reproduction.......           2           2           2
    25.2    Other services..................          33          50          76
    26.0    Supplies and materials..........           3           3           3
    31.0    Equipment.......................           5           5           5
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         202         231         261
    99.0  Reimbursable obligations..........           9          24          24
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         211         255         285
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 24-0100-0-1-805      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       1,965       2,063       2,063
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          80         141         141
    ---------------------------------------------------------------------------

                           Office of Inspector General

                              salaries and expenses

                       (including transfer of trust funds)

        For necessary expenses of the Office of Inspector General in
    carrying out the provisions of the Inspector General Act, as amended,
    including services as authorized by 5 U.S.C. 3109, hire of passenger
    motor vehicles, [$1,360,000] $1,398,000; and in addition, not to exceed
    [$9,745,000] $10,016,000 for administrative expenses to audit,
    investigate, and provide other oversight of the Office of Personnel
    Management's retirement and insurance programs, to be transferred from
    the appropriate trust funds of the Office of Personnel Management, as
    determined by the Inspector General: Provided, That the Inspector
    General is authorized to rent conference rooms in the District of
    Columbia and elsewhere. (Independent Agencies Appropriations Act, 2001,
    as enacted by section 1(a)(3) of P.L. 106-554.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0400-0-1-805      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations.............          11          11          11
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          12          11          11
    23.95 Total new obligations.............         -11         -11         -11
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           1           1           1
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          11          10          10
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          12          11          11
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................
    72.95   Uncollected customer payments
              from Federal sources, start of
              year..........................          -2          -2
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          -2          -2
    73.10 Total new obligations.............          11          11          11
    73.20 Total outlays (gross).............         -12         -11         -11
    73.40 Adjustments in expired accounts
            (net)...........................           3
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.
    74.95   Uncollected customer payments
              from Federal sources, end of
              year..........................          -2
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          -2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          11          11          11
    86.93 Outlays from discretionary
            balances........................           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          12          11          11
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -11         -10         -10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           1           1           1
    90.00 Outlays...........................           3           1           1
    ---------------------------------------------------------------------------

        This appropriation provides agency-wide audit, investigative,
    evaluation, inspection, and administrative sanction functions to
    identify management and administrative deficiencies that may create
    conditions for fraud, waste, and mismanagement. The audits function
    provides internal agency audit, insurance audit, and contract audit
    services. Contract audits provide professional advice to agency
    contracting officials on accounting and financial matters regarding the
    negotiation, award, administration, repricing, and settlement of
    contracts. Internal agency audits review and evaluate all facets of
    agency operations, including financial statements. Insurance audits
    review the operations of health and life insurance carriers, health care
    providers, and insurance subscribers. The investigative function
    provides for the detection and investigation of improper and illegal
    activities involving programs, personnel, and operations. Administrative
    sanctions debar from participation in the health insurance program those
    health care providers whose conduct may pose a threat to the financial
    integrity of the program itself or to the well-being of insurance
    program enrollees. These Inspector General activities resulted in
    positive financial impacts of approximately $105 million, 15 criminal
    convictions, and 2,706 administrative sanctions in 2000.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0400-0-1-805      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           6           6           6

    [[Page 1083]]

    12.1    Civilian personnel benefits.....           2           2           2
    23.1    Rental payments to GSA..........           1           1           1
    25.2    Other services..................           1           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          10          10          10
    99.5  Below reporting threshold.........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          11          11          11
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 24-0400-0-1-805      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......          98         111         111
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......                       1           1
    ---------------------------------------------------------------------------

          Government Payment for Annuitants, Employees Health Benefits

          For payment of Government contributions with respect to retired
    employees, as authorized by chapter 89 of title 5, United States Code,
    and the Retired Federal Employees Health Benefits Act (74 Stat. 849), as
    amended, such sums as may be necessary. (Independent Agencies
    Appropriations Act, 2001, as enacted by section 1(a)(3) of P.L. 106-
    554.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0206-0-1-551      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Government contribution for
            annuitants benefits (1959 Act)..       5,046       5,569       6,100
    00.02 Government contribution for
            annuitants benefits (1960 Act)..           3           3           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 13.0)...................       5,049       5,572       6,102
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       5,049       5,572       6,102
    23.95 Total new obligations.............      -5,049      -5,572      -6,102
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.05   Appropriation (indefinite)......       5,049       5,572       6,102
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         391         437         472
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................         391         437         472
    73.10 Total new obligations.............       5,049       5,572       6,102
    73.20 Total outlays (gross).............      -5,003      -5,538      -6,077
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.         437         472         496
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year         437         472         496
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       4,612       5,100       5,606
    86.98 Outlays from mandatory balances...         391         437         472
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       5,003       5,538       6,077
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       5,049       5,572       6,102
    90.00 Outlays...........................       5,003       5,538       6,077
    ---------------------------------------------------------------------------

        This appropriation covers: (1) the Government's share of the cost of
    health insurance for annuitants as defined in sections 8901 and 8906 of
    title 5, United States Code; (2) the Government's share of the cost of
    health insurance for annuitants (who were retired when the Federal
    employees health benefits law became effective), as defined in the
    Retired Federal Employees Health Benefits Act of 1960; and (3) the
    Government's contribution for payment of administrative expenses
    incurred by the Office of Personnel Management in administration of the
    Act.

        The budget authority for this account recognizes the amounts being
    remitted by the U.S. Postal Service (USPS) to finance a portion of its
    post-1971 annuitants' health benefit costs.

                                         2000 actual  2001 est.   2002 est.
    Annuitants:
      FEHB..............................   1,864,019   1,882,000   1,899,000
        (USPS non-add)..................     424,813     412,000     406,000
      REHB..............................       4,565       3,800       3,150
                                        ------------------------------------
          Total, annuitants.............   1,868,584   1,885,800   1,902,150
                                        ====================================

           Government Payment for Annuitants, Employee Life Insurance

        For payment of Government contributions with respect to employees
    retiring after December 31, 1989, as required by chapter 87 of title 5,
    United States Code, such sums as may be necessary. (Independent Agencies
    Appropriations Act, 2001, as enacted by section 1(a)(3) of P.L. 106-
    554.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0500-0-1-602      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations (object
            class 25.2).....................          27          32          33
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          27          32          33
    23.95 Total new obligations.............         -27         -32         -33
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................          27          32          33
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................           3           3           3
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................           3           3           3
    73.10 Total new obligations.............          27          32          33
    73.20 Total outlays (gross).............         -27         -32         -33
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.           3           3           3
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year           3           3           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          24          29          30
    86.98 Outlays from mandatory balances...           3           3           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          27          32          33
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          27          32          33
    90.00 Outlays...........................          27          32          33
    ---------------------------------------------------------------------------

        This appropriation finances the Government's share of premiums,
    which is one-third the cost, for Basic life insurance for annuitants
    retiring after December 31, 1989, and who are less than 65 years old.

             Payment to Civil Service Retirement and Disability Fund

        For financing the unfunded liability of new and increased annuity
    benefits becoming effective on or after October 20, 1969, as authorized
    by 5 U.S.C. 8348, and annuities under special Acts to be credited to the
    Civil Service Retirement and Disability Fund, such sums as may be
    necessary: Provided, That annuities authorized by the Act of May 29,
    1944, as amended, and the Act of August 19, 1950, as amended (33 U.S.C.
    771-775), may hereafter be paid out of the Civil Service Retirement and
    Disability Fund. (Independent Agencies Appropriations Act, 2001, as
    enacted by section 1(a)(3) of P.L. 106-554.)

    [[Page 1084]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0200-0-1-805      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Payment of Government share of
            retirement costs................       9,055       9,102       9,171
    00.03 Transfers for interest on unfunded
            liability and payment of
            military service annuities......      12,439      12,642      13,236
    00.05 Spouse equity payment.............          63          60          58
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      21,557      21,804      22,465
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      21,557      21,804      22,465
    23.95 Total new obligations.............     -21,557     -21,804     -22,465
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

            Appropriation (indefinite):
    60.05     Appropriation (indefinite)....      12,439      12,642      13,236
    60.05     Appropriation (indefinite)....       9,118       9,162       9,229
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................      21,557      21,804      22,465
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............      21,557      21,804      22,465
    73.20 Total outlays (gross).............     -21,557     -21,804     -22,465
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................      21,557      21,804      22,465
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      21,557      21,804      22,465
    90.00 Outlays...........................      21,557      21,804      22,465
    ---------------------------------------------------------------------------

        Payment of Government share of retirement costs.--This payment
    amortizes increases in the static unfunded liability created since
    October 20, 1969 by any statute which authorizes new or liberalized
    benefits, an extension of retirement coverage, or pay increases.

        Transfers for interest on static unfunded liability and payment of
    military service annuities.--This transfer covers interest on the static
    unfunded liability and annuity disbursements attributable to military
    service.

        Payments for spouse equity.--This payment provides survivor
    annuities to eligible former spouses of annuitants who died between
    September 1978 and May 1986 and who did not elect survivor coverage.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0200-0-1-805      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    12.1  Civilian personnel benefits.......       9,118       9,162       9,229
    13.0  Benefits for former personnel.....      12,439      12,642      13,236
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      21,557      21,804      22,465
    ---------------------------------------------------------------------------

    Intragovernmental funds:

                                 Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-4571-0-4-805      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 DOD testing.......................           7           8           8
    09.02 Employment service................          32          38          36
    09.03 Investigations....................         135         189         187
    09.04 Workforce relations...............          32          37          39
    09.05 Executive resources...............          22          30          30
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         228         302         300
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          20          48          48
    22.00 New budget authority (gross)......         256         302         300
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         276         350         348
    23.95 Total new obligations.............        -228        -302        -300
    24.40 Unobligated balance carried
            forward, end of year............          48          48          48
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).         304         302         300
    68.10     Change in uncollected customer
                payments from Federal
                sources.....................         -48
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....         256         302         300
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         193         107         107
    72.95   Uncollected customer payments
              from Federal sources, start of
              year..........................        -142         -94         -94
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          51          13          13
    73.10 Total new obligations.............         228         302         300
    73.20 Total outlays (gross).............        -315        -302        -300
    74.00 Change in uncollected customer
            payments from Federal sources...          48
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.         107         107         107
    74.95   Uncollected customer payments
              from Federal sources, end of
              year..........................         -94         -94         -94
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          13          13          13
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         353         302         300
    86.93 Outlays from discretionary
            balances........................         -38
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         315         302         300
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -303        -301        -299
    88.40     Non-Federal sources...........          -1          -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -304        -302        -300
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources.          48
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          11
    ---------------------------------------------------------------------------

        DOD testing.--OPM conducts military entrance exams for the
    Department of Defense (DOD) as a cost-effective and reliable provider.
    The Employment Service continued to provide testing for the Department
    of Defense, conducting approximately 15,954 student test sessions and
    23,364 enlistment sessions.

        Employment Service.--OPM delivers employment information, examining
    services, automated staffing, and related human resource management
    services to Federal agencies nationwide. In 2000, we maintained
    contracts for a wide array of human resource products and services with
    the Executive, Legislative, and Judicial branches as well as state and
    municipal agencies.

        Investigations.--Through a contract with a private company, OPM
    conducts National Agency Check and Inquiry cases and background security
    investigations for Federal agencies on a reimbursable basis. To the
    extent that OPM is required to pay a fee to the Federal Bureau of
    Investigation for name and fingerprint checks, agencies are required to
    reimburse OPM for such fees through the revolving fund.

        Workforce relations.--Through the Training and Management Assistance
    (TMA) program, OPM provides assistance to government agencies in
    managing the development of training and human resources management
    solutions that meet their specific short-term and long-range objectives.
    This

    [[Page 1085]]

    is accomplished through an expedited contracting process, which is
    managed by an experienced team of HR and contracting professionals.

        Program performance.--The TMA performance indicators are designed to
    measure the financial stability of the program and customer
    satisfaction. The financial indicator measures whether program costs are
    met. The customer satisfaction indicator assures that TMA services are
    meeting the needs and objectives of client agencies.

        Executive resources.--OPM conducts residential and non-residential
    programs for Federal executives and managers to improve the
    effectiveness and efficiency of Federal programs.

                                 WORKLOAD COUNT

                                         2000 actual  2001 est.   2002 est.
    Participant training days...........      87,890      92,403      93,538
    Background security investigations
    processed...........................      56,181      62,000      60,500
    National and special agency check
    and inquiry cases...................     415,983     715,000     715,000

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-4571-0-4-805      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          22          24          24
    11.3    Other than full-time permanent..           6           5           5
    11.5    Other personnel compensation....           2           2           2
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          30          31          31
    12.1  Civilian personnel benefits.......           7           8           8
    21.0  Travel and transportation of
            persons.........................           4           3           3
    23.1  Rental payments to GSA............           7           7           7
    23.3  Communications, utilities, and
            miscellaneous charges...........           6           5           5
    24.0  Printing and reproduction.........           1           2           1
    25.2  Other services....................         168         238         237
    26.0  Supplies and materials............           2           4           4
    31.0  Equipment.........................           3           4           4
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         228         302         300
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 24-4571-0-4-805      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    2001  Total compensable workyears: Full-
            time equivalent employment......         691         668         668
    ---------------------------------------------------------------------------

                                   Trust Funds

                  Civil Service Retirement and Disability Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............     477,477     508,104     539,035
        Receipts:
    02.00 Employee contributions............       4,506       4,339       4,074
    02.01 District of Columbia contributions          70          68          62
    02.02 Employee deposits, redeposits and
            other contributions.............         131         132         134
    02.40 Agency contributions..............       9,611      10,316      10,679
    02.41 Postal Service agency
            contributions...................       2,863       2,980       2,974
    02.42 Postal Service supplemental
            contributions...................       3,582       3,788       3,880
    02.43 Federal Financing Bank interest...       1,365       1,372       1,368
    02.44 Treasury interest.................      32,243      33,736      35,163
    02.45 General fund payment to the Civil
            Service Retirement and
            Disability fund.................      21,557      21,804      22,465
    02.46 Re-employed annuitants salary
            offset..........................          39          24          25
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..      75,967      78,559      80,824
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...     553,444     586,663     619,859
        Appropriations:
    05.00 Civil service retirement and
            disability fund.................     -45,340     -47,628     -49,831
                                               ---------   ---------  ----------
    05.99   Total appropriations............     -45,340     -47,628     -49,831
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............     508,104     539,035     570,028
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Annuities.........................      44,893      47,169      49,356
    00.02 Refunds and death claims..........         346         341         344
    00.03 OPM Administration................         103         116         128
    00.04 Transfer to MSPB..................           2           2           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      45,344      47,628      49,831
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      45,340      47,628      49,831
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      45,344      47,628      49,831
    23.95 Total new obligations.............     -45,344     -47,628     -49,831
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.26   Appropriation (trust fund,
              definite).....................          83          90         103
          Mandatory:

    60.27   Appropriation (trust fund,
              indefinite)...................      75,880      78,469      80,721
    60.45   Portion precluded from
              obligation....................     -30,623     -30,931     -30,993
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................      45,257      47,538      49,728
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      45,340      47,628      49,831
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................       3,796       3,942       4,153
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................       3,796       3,942       4,153
    73.10 Total new obligations.............      45,344      47,628      49,831
    73.20 Total outlays (gross).............     -45,194     -47,417     -49,640
    73.45 Recoveries of prior year
            obligations.....................          -4
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.       3,942       4,153       4,344
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year       3,942       4,153       4,344
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          83          90         103
    86.97 Outlays from new mandatory
            authority.......................      41,315      43,385      45,384
    86.98 Outlays from mandatory balances...       3,796       3,942       4,153
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      45,194      47,417      49,640
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      45,340      47,628      49,831
    90.00 Outlays...........................      45,194      47,417      49,640
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...     481,274     512,037     543,184
    92.02 Total investments, end of year:
            Federal securities: Par value...     512,037     543,184     574,368
    ---------------------------------------------------------------------------

        This fund: (1) pays annuities to retired employees or their
    survivors; (2) makes refunds to separated employees for amounts withheld
    and to beneficiaries of employees who died before retirement or before
    annuities equaled the amount withheld; and (3) pays expenses of the
    Office of Personnel Management and the Merit Systems Protection Board
    for administering the program. The fund covers two Federal civilian
    retirement systems: the Civil Service Retirement System (CSRS) and the
    Federal Employees' Retirement System (FERS).

        CSRS is basically a defined benefit plan, covering Federal employees
    hired prior to 1984. CSRS participants do not participate in the Social
    Security system. FERS is a three-tiered pension program that uses Social
    Security as a base, provides an additional basic benefit, and includes a
    thrift savings plan. FERS covers employees hired after 1983 and formerly
    CSRS-covered employees who elected to join FERS.

                                         2000 actual  2001 est.   2002 est.
    Active employees....................   2,763,851   2,754,850   2,703,900
    Annuitants:
      Employees.........................   1,743,196   1,758,653   1,775,209

    [[Page 1086]]

      Survivors.........................     633,308     639,143     643,923
                                        ------------------------------------
          Total, annuitants.............   2,376,504   2,397,796   2,419,132
                                        ====================================

                      Status of Funds (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Unexpended balance, start of year:
    0100  Treasury balance..................           3          11           8
          U.S. Securities:

    0101    Par value.......................     481,274     512,037     543,184
    0102    Unrealized discounts............          -4          -3          -4
                                               ---------   ---------  ----------
    0199    Total balance, start of year....     481,273     512,046     543,188
        Cash income during the year:
          Current law:

            Receipts:
    1200      Employee contributions, Civil
                Service Retirement and
                Disability Fund.............       4,506       4,339       4,074
    1201      District of Columbia
                contributions...............          70          68          62
    1202      Employee deposits, redeposits,
                and voluntary contributions.         131         132         134
            Offsetting receipts
                (intragovernmental):
    1240      Agency contributions, Civil
                Service Retirement and
                Disability Fund.............       9,611      10,316      10,679
    1241      Postal Service agency
                contributions, Civil Service
                Retirement and Disability
                Fund........................       2,863       2,980       2,974
    1242      Postal Service supplemental
                contributions, Civil Service
                Retirement and Disability
                Fund........................       3,582       3,788       3,880
    1243      Federal Financing Bank
                interest, Civil Service
                Retirement and Disability
                Fund........................       1,365       1,372       1,368
    1244      Treasury interest, Civil
                Service Retirement and
                Disability Fund.............      32,243      33,736      35,163
    1245      General fund payment to the
                Civil Service Retirement and
                Disability Fund.............      21,557      21,804      22,465
    1246      Re-employed annuitant salary
                offset, Civil Service
                Retirement and Disability
                Fund........................          39          24          25
    1299    Income under present law........      75,967      78,559      80,824
        Cash outgo during year:
          Current law:

            Cash outgo during the year (-):
    4500      Payment of claims to retired
                employees...................     -37,541     -39,475     -41,562
    4500      Payment of alternative annuity
                refunds.....................          -6          -4          -2
    4500      Payment of claims to survivor
                annuitants..................      -7,210      -7,480      -7,601
    4500      Lump sum payments to estates
                or beneficiaries of deceased
                annuitants and employees....        -137        -164        -186
    4500      Refunds to living separated
                employees...................        -195        -176        -158
    4500      Administration................        -105        -118        -131
    4599    Outgo under current law (-).....     -45,194     -47,417     -49,640
        Unexpended balance, end of year:
    8700  Uninvested balance................          11           8           8
          Federal securities:

    8701    Par value.......................     512,037     543,184     574,368
    8702    Unrealized discounts............          -3          -4          -4
                                               ---------   ---------  ----------
    8799    Total balance, end of year......     512,046     543,188     574,372
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................         105         118         131
    42.0  Insurance claims and indemnities..      44,893      47,169      49,356
    44.0  Refunds and death claims..........         346         341         344
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      45,344      47,628      49,831
    ---------------------------------------------------------------------------

                  Civil Service Retirement and Disability Fund

                  (Legislative proposal, not subject to PAYGO)

        The Administration will propose legislation to make permanent the
    higher agency contributions to the retirement fund mandated by the
    Balanced Budget Act of 1997, which under current law is scheduled to
    expire in 2003.

                          Employees Life Insurance Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8424-0-8-602      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.80 Employees life insurance fund,
            offsetting collections..........       3,254       3,312       3,446
        Appropriations:
    05.00 Employees life insurance fund.....      -3,254      -3,312      -3,446
                                               ---------   ---------  ----------
    05.99   Total appropriations............      -3,254      -3,312      -3,446
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8424-0-8-602      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Regular program premiums..........       1,129       1,273       1,295
    09.02 Optional program premiums.........         753         827         863
    09.03 Beneficial program premiums.......           2           2           2
    09.04 Administration....................           2           2           2
    09.05 Long Term Care Administration.....                       3          20
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................       1,886       2,107       2,182
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........      20,446      21,834      23,079
    22.00 New budget authority (gross)......       3,272       3,350       3,458
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      23,718      25,184      26,537
    23.95 Total new obligations.............      -1,886      -2,107      -2,182
    24.40 Unobligated balance carried
            forward, end of year............      21,834      23,079      24,355
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           2           2           2
          Mandatory:

    69.00   Offsetting collections (cash)...       3,252       3,310       3,444
    69.10   Change in uncollected customer
              payments from Federal sources.          18          38          12
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........       3,270       3,348       3,456
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,272       3,350       3,458
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         409         516         637
    72.95   Uncollected customer payments
              from Federal sources, start of
              year..........................        -369        -387        -425
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          40         129         212
    73.10 Total new obligations.............       1,886       2,107       2,182
    73.20 Total outlays (gross).............      -1,778      -1,986      -2,149
    74.00 Change in uncollected customer
            payments from Federal sources...         -18         -38         -12
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.         516         637         670
    74.95   Uncollected customer payments
              from Federal sources, end of
              year..........................        -387        -425        -437
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year         129         212         233
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           2           2
    86.97 Outlays from new mandatory
            authority.......................       1,776       1,984       2,147
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,778       1,986       2,149
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Agency contributions..........        -398        -429        -446
    88.20     Interest on Federal securities      -1,425      -1,422      -1,462
              Non-Federal sources:
    88.40       Regular program.............        -618        -647        -676
    88.40       Optional program............        -813        -814        -862
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -3,254      -3,312      -3,446

    [[Page 1087]]

          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources.         -18         -38         -12
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................      -1,476      -1,326      -1,297
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...      20,755      22,372      23,698
    92.02 Total investments, end of year:
            Federal securities: Par value...      22,372      23,698      24,995
    ---------------------------------------------------------------------------

        This fund finances payments to private insurance companies for
    Federal employees' group life insurance and expenses of the Office of
    Personnel Management in administering the program.

        Budget program.--The status of the basic (regular and optional) life
    insurance program on September 30 is as follows:

                                         2000 actual  2001 est.   2002 est.
    Life insurance in force (in billions
        of dollars):
      On active employees...............         506         516         526
      On retired employees..............          50          52          54
                                        ------------------------------------
          Total.........................         556         568         580
                                        ====================================
    Number of participants (in
        thousands):
      Active employees..................       2,334       2,311       2,288
      Annuitants........................       1,607       1,611       1,614
                                        ------------------------------------
          Total.........................       3,941       3,922       3,902
                                        ====================================

        Financing.--Non-Postal Service employees and all retirees under 65
    pay two-thirds of the premium costs for Basic coverage; agencies pay the
    remaining third. Optional and certain post-retirement Basic coverages
    are paid entirely by enrollees. The status of the reserves at the end of
    the year is as follows:

             Status of Reserves          2000 actual  2001 est.   2002 est.
    Held in reserve (in millions of
        dollars):
      Contingency reserve...............          65          65          65
      Beneficial association program
        reserve.........................           1           1           1
      U.S. Treasury reserve.............      22,372      23,698      24,995
                                        ------------------------------------
          Total reserves................      22,438      23,764      25,061
                                        ====================================

              Employees and Retired Employees Health Benefits Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-9981-0-8-551      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.80 Employees and retired employees
            health benefits fund, offsetting
            collections.....................      19,737      21,911      24,174
        Appropriations:
    05.00 Employees and retired employees
            health benefits fund............     -19,737     -21,911     -24,174
                                               ---------   ---------  ----------
    05.99   Total appropriations............     -19,737     -21,911     -24,174
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-9981-0-8-551      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Benefit payments..................      19,543      21,048      22,826
    09.02 Payments from OPM contingency
            reserve.........................          95         230         240
    09.03 Government payment for annuitants
            (1960 Act)......................           3           3           2
    09.04 Administration....................          22          23          24
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.6)...................      19,662      21,304      23,092
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       4,142       4,173       4,876
    22.00 New budget authority (gross)......      19,691      22,007      24,272
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      23,833      26,180      29,148
    23.95 Total new obligations.............     -19,662     -21,304     -23,092
    24.40 Unobligated balance carried
            forward, end of year............       4,173       4,876       6,056
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          22          23          24
          Mandatory:

    69.00   Offsetting collections (cash)...      19,715      21,888      24,150
    69.10   Change in uncollected customer
              payments from Federal sources.         -46          96          98
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........      19,669      21,984      24,249
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      19,691      22,007      24,272
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................       2,567       2,655       2,799
    72.95   Uncollected customer payments
              from Federal sources, start of
              year..........................        -896        -850        -946
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................       1,671       1,805       1,853
    73.10 Total new obligations.............      19,662      21,304      23,092
    73.20 Total outlays (gross).............     -19,575     -21,159     -23,001
    74.00 Change in uncollected customer
            payments from Federal sources...          46         -96         -98
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.       2,655       2,799       2,891
    74.95   Uncollected customer payments
              from Federal sources, end of
              year..........................        -850        -946      -1,044
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year       1,805       1,853       1,847
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          22          23          24
    86.97 Outlays from new mandatory
            authority.......................      18,656      20,286      22,031
    86.98 Outlays from mandatory balances...         896         849         946
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      19,575      21,159      23,001
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Agency contributions........      -8,291      -9,379     -10,357
    88.00       Government contributions for
                  annuitants................      -5,745      -6,307      -6,913
    88.20     Interest on Federal securities        -369        -351        -412
              Non-Federal sources:
    88.40       Employee salary withholdings      -2,773      -3,056      -3,355
    88.40       Annuity withholdings........      -2,491      -2,761      -3,081
    88.40       Contributions from D.C.
                  Government................         -68         -57         -56
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........     -19,737     -21,911     -24,174
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources.          46         -96         -98
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................        -165        -752      -1,173
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...       5,835       5,989       6,748
    92.02 Total investments, end of year:
            Federal securities: Par value...       5,989       6,748       7,919
    ---------------------------------------------------------------------------

                      Status of Funds (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-9981-0-8-551      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Unexpended balance, start of year:
    0100  Treasury balance..................           1          12           5
          U.S. Securities:

    0101    Par value.......................       5,835       5,989       6,748
    0102    Unrealized discounts............         -23         -24         -23
                                               ---------   ---------  ----------
    0199    Total balance, start of year....       5,813       5,978       6,729
        Cash income during the year:
          Current law:

            Offsetting collections:
              Offsetting governmental
                  receipts:
    1280        Contributions from Employing
                  Agencies..................       5,114       5,683       6,106
    1280        Contributions from Postal
                  Service for Active
                  Employees.................       3,176       3,696       4,252

    [[Page 1088]]

    1280        Contributions from Postal
                  Service for Annuitants....         742         769         835
    1280        Government Payment for
                  Annuitant Health Benefits.       5,003       5,538       6,077
    1280        Interest Earned.............         369         352         412
    1280        Contributions from DC
                  Government................          68          57          56
    1280        Contributions from Active
                  Employees.................       2,773       3,056       3,355
    1280        Contributions from
                  Annuitants................       2,491       2,761       3,081
    1299    Income under present law........      19,737      21,911      24,174
        Cash outgo during year:
          Current law:

            Cash outgo during the year (-):
    4500      Benefit Payments (-)..........     -19,457     -20,906     -22,737
    4500      Payments to Carriers from OPM
                Contingency Reserves (-)....         -95        -230        -240
    4500      Administration (-)............         -21         -23         -24
    4599    Outgo under current law (-).....     -19,575     -21,159     -23,001
        Unexpended balance, end of year:
    8700  Uninvested balance................          12           5           5
          Federal securities:

    8701    Par value.......................       5,989       6,748       7,919
    8702    Unrealized discounts............         -24         -23         -23
                                               ---------   ---------  ----------
    8799    Total balance, end of year......       5,978       6,729       7,903
    ---------------------------------------------------------------------------

        This display combines the Federal Employees Health Benefits (FEHB)
    fund and the Retired Employees Health Benefits (REHB) fund.

        The FEHB fund provides for the cost of health benefits for: (1)
    active employees; (2) employees who retired after June 1960, or their
    survivors; (3) those annuitants transferred from the REHB program as
    authorized by Public Law 93-246; and (4) the related expenses of the
    Office of Personnel Management (OPM) in administering the program.

        The REHB fund, created by the Retired Federal Employees Health
    Benefits Act of 1960, provides for: (1) the cost of health benefits for
    retired employees and survivors who enroll in a Government-sponsored
    uniform health benefits plan; (2) the contribution to retired employees
    and survivors who retain or purchase private health insurance; and (3)
    expenses of OPM in administering the program.

        Budget program.--The balance of the FEHB fund is available for
    payments without fiscal year limitation. Numbers of participants at the
    end of each fiscal year are as follows:

                                         2000 actual  2001 est.   2002 est.
    Active employees....................   2,220,000   2,348,000   2,305,000
    Annuitants..........................   1,864,000   1,882,000   1,889,000
                                        ------------------------------------
        Total...........................   4,084,000   4,230,000   4,194,000
                                        ====================================

        In determining a biweekly subscription rate to cover program costs,
    one percent is added for administrative expenses and three percent is
    added for a contingency reserve held by OPM for each carrier. OPM is
    authorized to transfer unused administrative reserve funds to the
    contingency reserve.

        The REHB fund is available without fiscal year limitation. The
    amounts contributed by the Government are paid into the fund from annual
    appropriations. The number of participants at the end of each fiscal
    year are as follows:

                                         2000 actual  2001 est.   2002 est.
    Uniform plan........................       1,081         900         750
    Private plans.......................       3,484       2,900       2,400
                                        ------------------------------------
        Total...........................       4,565       3,800       3,150
                                        ====================================

        Financing.--The funds are financed by: (1) withholdings from active
    employees and annuitants; (2) agency contributions for active employees;
    (3) Government contributions for annuitants appropriated to OPM; and (4)
    contributions made by the United States Postal Service in accordance
    with the provisions of Public Law 101-508 and Public Law 103-66.

        Operating results.--Funds made available to carriers but not used to
    pay claims in the current period are carried forward as special reserves
    for use in subsequent periods.

        OPM maintains a contingency reserve, funded by employee and
    Government contributions, that may be used to defray future cost
    increases or provide increased benefits. OPM makes payments to carriers
    from this reserve whenever carrier-held reserves fall below levels
    prescribed by OPM regulations or when carriers can demonstrate good
    cause such as unexpected claims experience or variations from expected
    community rates.